Menu
VMware backs out of planned Virtustream cloud business

VMware backs out of planned Virtustream cloud business

Meanwhile, Dell-EMC union comes one step closer to reality

Just months after announcing plans to merge its cloud business with EMC’s Virtustream, VMware said today that it is backing out of the deal.

VMware informed investors via a regulatory filing that it will no longer participate in the formation of a Virtustream Cloud Services Business unit, but did not say why.

The move comes as EMC announced over the weekend that is moving forward with plans to be acquired by Dell for $67 billion, having not received any better offers since the record deal was revealed in October.

+ MORE AT NETWORK WORLD: 10 Hot IT Job Skills for 2016 | Puppet Labs CEO on containers, infrastructure and the implications of an IPO +

The history between VMware and Virtustream has been murky.

EMC, which owns a majority stake in VMware, announced in May that it was buying Virtustream for $1.2 billion. Virtustream is a niche IaaS cloud computing provider that specializes in helping customers migrate complex workloads, such as customized SAP programs, to the cloud.

VMware, meanwhile, has its own cloud strategy, the latest iteration of which is named vCloudAir. It’s also a public IaaS cloud computing service that offers virtual machines, storage, databases and disaster recovery as a service, among others features. VMware’s cloud offering has struggled to gain major share in the IaaS public cloud market dominated by Amazon Web Services, Microsoft Azure, Google Cloud Platform and IBM.

When EMC bought Virtustream there was talk of overlap within the EMC Federation between Virtustream and VMware, but EMC officials played that down. After Dell made its leveraged buyout offer for EMC, and in turn VMware, news came out that VMware’s cloud assets would go under the brand of Virtustream.

Having now backed out of the Virtuestream deal, VMware will continue to offer vCloud Air products and partner with vendors in its vCloud Air Network. However, it won't be a stranger to Virtustream.

“VMware and Virtustream will continue to partner closely as part of the EMC Federation,” VMware spokesperson Michael Thacker wrote in an email.

The demise of this deal is not a complete surprise. Rumors of turmoil have been circulating for weeks amid investor discontent with the idea. Some investors are wondering why the two companies were linked in the first place.


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags DellVMware

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments